The Hindu : National : `Ready to provide funds to States for agri mission'

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Wednesday, May 30, 2007
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`Ready to provide funds to States for agri mission'

Ashok Dasgupta

Centre-State consensus emerging

NEW DELHI: In view of the spurt in the prices of primary food articles that has been driving the inflationary spiral, the Centre is ready to provide additional resources to the States for implementing a proposed mission for raising the production of wheat, rice and pulses.

Addressing Chief Ministers at the National Development Council meeting here on Tuesday, Finance Minister P. Chidambaram said consensus was emerging between the Centre and the States on launching the Agri mission.

"It is in our common interest that we agree on a plan of action for the Central Government and the State Government [for the proposed mission] and implement it without hindrance." Mr. Chidambaram said: "I realise that when we launch the mission, there will be demand for more funds.... Hence, I would support the proposal to provide additional resources and transfer the same through the method of additional Central assistance."

As the requirement of each State would be different, he supported the development of State-specific plans for agriculture.

"Even a State-specific plan should be an aggregate of district-specific plans, formulated for the districts in that State."

No wastage

Each State should also ensure that its current level of farm expenditure as a proportion of its total Plan expenditure was maintained and find additional funds from its own resources. Besides, the additional resources provided by the Centre should be spent, without wastage and corruption, on irrigation, seeds, soil testing, better delivery of the fertilizer subsidy, modern markets and agricultural research and extension.

Noting that the mission should aim at increasing not only production but also productivity, Mr. Chidambaram pointed out that the major sectors that caused a deceleration in growth and productivity included overexploitation of soil nutrients and reserves, improper water management and imbalanced use of fertilizers.

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